Troy Martin Development Corp. was recently given the opportunity to bin on an attractive development site in downtown Chico. The executives at Troy Martin, including Troy, believe there is growing demand for high end offices due to the growing demand by companies in the area. The investors at Troy Martin expect to achieve a 12.5% return on development projects and do not wish to begin developments if such returns cannot be achieved. Isaac Shuman is the Head of Development at the firm who was given the task of assessing the feasibility of the Martin office project. Below are the cost and income data Isaac has collected for the project: Land of $37/GSF Hard costs of $73/GSF Soft costs of $35/GSF Rent of $38/LSF Op Costs of $12/GSF Vacancy of 6% of leasable footage Loss factor of 30% of gross footage

1) What is the minimum replacement rent per Gross Square Foot Troy must expect for the development to meet the investors expected return?